Bitcoin Faces August Curse as Clarity Act Vote Looms Large
Bitcoin has entered the month of August, known for its high volatility, after staging a rebound in July. The cryptocurrency's average return since 2013 is slightly above 1 percent in August, but the median is negative. This is because only a few strong markets have lifted the average, while most years ended with losses.
In August 2022, Bitcoin fell nearly 9 percent, and it dropped more than 6 percent in August 2023. After a sharp rebound from a June low, Bitcoin traded sideways for most of July in the $63,000 to $65,000 range. It remains in a recovery phase rather than a confirmed uptrend.
The current price is seeing balanced buying and selling near the 50-day and 100-day moving averages, but the 200-day moving average is still pointing downward around $73,000, keeping a cautious view on the longer-term trend. The relative strength index (RSI) is also holding around the neutral 50 level, suggesting it could tilt in either direction depending on where volume builds.
Another variable is investors' position adjustments ahead of September, historically seen as the worst month. Buyers are first aiming to regain resistance at the 200-day moving average and break above the $67,000 level. If it clears that, attention could shift to the $72,000 range.